Quarterly report pursuant to Section 13 or 15(d)

Asset Purchase Acquisition of Kathy L Amos Audiology

v3.19.2
Asset Purchase Acquisition of Kathy L Amos Audiology
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Asset Purchase Acquisition of Kathy L Amos Audiology

NOTE 2 – Asset Purchase Acquisition of Kathy L Amos Audiology 

 

Effective September 10, 2018, the Company acquired all of the assets and assumed certain liabilities of Kathy L Amos Audiology (“Amos Audiology”) in exchange for 340,352 shares of common stock (the “Acquisition”). Amos Audiology provides retail hearing aid sales and audiological services in the East Bay area of San Francisco.

 

Based on the fair value of the common stock issued of $22,974 and the assumed liabilities of $33,049, the total purchase consideration was $56,023.

 

The following table summarizes the purchase price allocation of the fair value of assets acquired and liabilities assumed in the acquisition:

 

    Purchase Price Allocation
 Fair value of consideration for Acquisition   $ 22,974  
 Liabilities assumed     33,049  
   Total purchase consideration   $ 56,023  
         
Tangible assets acquired   $ 43,016  
Intangible assets     13,007  
    $ 56,023  

 

The total purchase price of $56,023 has been allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values as of the completion of the Acquisition. The fair value of Amos Audiology’s identifiable intangible assets was estimated primarily using the income approach which requires an estimate or forecast of all the expected future cash flows, either through the use of the relief-from-royalty method or the multi-period excess earnings method. The Company determined the identifiable intangible assets, consisting of a customer base and non-compete had fair values of $300 and $12,707, respectively.